INCOTERMS
The most used incoterm clauses explained as per seller & buyer's contract responsabilities
EXW Ex Works
The seller is obliged to place the goods at disposal of the buyer at the named place of delivery.
The entire transport cost, accessories included, on account of buyer/receiver.
FAS Free Alongside Ship
The seller fulfils his delivery obligation when the goods have been placed alongside the vessel on the quay. It is the seller who bears the cost up to THAT POINT.
The buyer/receiver must stipulate at his own expenses a contract for the carriage of goods from the named port of shipment.
FOB Free on Board
The seller fulfils his delivery obligation when the goods have passed over the ship’s rail.
This means that the buyer has to bear all costs and risks of loss or damages to the goods from that point.
CFR or C&F Cost & Freight
The seller must pay the costs and freight necessary to bring the goods to the named port of destination as well as the customs clearance costs for the export goods.
CIF Cost, Insurance and Freight
The seller has the same obligations as under CFR but with the addition that he has to insure the goods against the risk of loss or damage to the goods during the carriage.